Supersession order by Madras Secretariat society quashed

The Madras High Court has directed the Tamil Nadu State Cooperative Societies Election Commission (TNSCEC) to notify the election for the six vacant posts to the Madras Secretariat Co-operative Building Society Ltd, while retaining the status of the existing directors.
Supersession order by Madras Secretariat society quashed

Chennai

As per the case, the elected Board of the Madras Secretariat Cooperative Building Society Ltd, was superseded on May 8, 2019 stating that the Board has lost the required quorum owing to vacancy in six posts out of 11 posts. Based on this, the Deputy Registrar of Cooperative Society (Housing), Chennai Division, directed holding of fresh election for all the 11 members and until then, the administrator should take charge of the Society.

Aggrieved by this, the existing directors-S Arun, L Venkatakrishnan, M Karthikeyan, V Rajasekar and A Vigneshvar-moved the high court. They submitted that out of the 11 post of directors, one died and five resigned. But still, five duly elected members were holding office and they cannot be forced to face another election by supersession.

Countering this, the special government pleader appearing for the Registrar, Cooperative Housing Society, argued that since the Board has lost the quorum, it is bound to be superseded and election should be conducted afresh. In this case, the resignation of the four members of the Board were not placed before the Board but by default on expiry of the 60th day, the resignation letters were deemed to be accepted. Thereafter, decision was taken to supersede the Board for want of quorum and conduct fresh election, he said. However, Justice G Jayachandran on observing that supersession of entire Board will arise if all the members of the Board of Directors tender resignation and not otherwise, said, “Looking from any angle, the impugned order is not sustainable and against the democracy ethics.”

Hence, the writ petition is allowed, and the order of supersession passed by the Deputy Registrar of Cooperative Society (Housing), is quashed, the judge said while directing to notify the election for the six vacant posts within three weeks.

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